Petra Diamonds (LON:PDL) saw profits surge last year on the back of increased production and strengthening demand for precious stones.
Revenue in the year to the end of June rose 20% to US$471.8mln from US$392.5mln the year before, as production rose 17% to 3.211mln carats, ahead of market guidance of 3mln carats.
This year, Petra is predicting production will rise to 3.2mln carats, and added that plans to expand production capacity to 5mln carats a year by fiscal 2019 remain on track.
Profit before tax rose to US$134.7mln from US$78.7mln the previous year.
Petra said it considering bringing forward the commencement of dividend payments from the previously communicated date of fiscal 2016.
"Petra's production growth comes at a time when demand for diamonds is continuing to grow around the world, but particularly in the major US market and in emerging markets such as China and India,” noted Johan Deppenaar, chief executive of Petra.
"There is subsequently a positive outlook for the company, particularly given our expectations for further increases in production, rising margins, supportive rough diamond prices, and the continued contribution of exceptional diamonds,” he added.
Investec described the results as “solid”, adding: “The strong outlook for the diamond market and the intention to bring forward the timing for dividend payments are both important positives.”
The broker also hailed management’s achievement in reducing working capital by US$17.8mln, despite ramping up production.
finnCap, meanwhile, lifted its price target to 278p from 263p because the net assets minus debt figure was better than it had expected.
Petra shares were modestly higher at 196.42p in lunchtime trading.